D.R. Horton (DHI) closed the most recent trading day at $108.92, moving +1.78% from the previous trading session. This change outpaced the S&P 500's 0.59% gain on the day. At the same time, the Dow added 0.35%, and the tech-heavy Nasdaq gained 0.83%.
Coming into today, shares of the homebuilder had lost 10.08% in the past month. In that same time, the Construction sector lost 4.44%, while the S&P 500 lost 2.84%.
Investors will be hoping for strength from D.R. Horton as it approaches its next earnings release, which is expected to be November 7, 2023. In that report, analysts expect D.R. Horton to post earnings of $3.97 per share. This would mark a year-over-year decline of 14.99%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $10.06 billion, up 4.32% from the year-ago period.
DHI's full-year Zacks Consensus Estimates are calling for earnings of $13.27 per share and revenue of $34.9 billion. These results would represent year-over-year changes of -19.62% and +4.24%, respectively.
Investors might also notice recent changes to analyst estimates for D.R. Horton. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.02% lower within the past month. D.R. Horton currently has a Zacks Rank of #3 (Hold).
Investors should also note D.R. Horton's current valuation metrics, including its Forward P/E ratio of 8.07. For comparison, its industry has an average Forward P/E of 8.07, which means D.R. Horton is trading at a no noticeable deviation to the group.
Investors should also note that DHI has a PEG ratio of 0.44 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. DHI's industry had an average PEG ratio of 0.68 as of yesterday's close.
The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 16, putting it in the top 7% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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